John Provan Head of Regulatory Policy Rail Strategy

Rail : the success story 10.3 tonnes of freight moved annually in Scotland. 25% increase in passengers since Continued growth –Freight in the UK expected to increase by 2% each year to 2030, a growth of 63 million tonnes. –Passengers: Glasgow by 38%, Edinburgh to double

Supporting economic growth Rail does what it does best: moving goods and people -Quickly -Efficiently -Comfortably -Safely

Our Record of Investment

Continuing to Invest

Rail 2014 Primarily passenger services post 2014 Public consultation – November to February Designed to stimulate debate: over 1200 responses Currently analysing views. Anticipate Ministerial statement – both freight and passenger - in the Spring.

Key messages Still to reach conclusions on many issues. However: -passengers and freight users at the heart -achieve greater integration -improve value for money and quality of service -build a platform for the rail industry in Scotland to reach its full potential

Priorities for rail freight Ensure sufficient capacity to accommodate growth and encourage modal shift Support continuation of the recent growth in intermodal traffic to benefit Scotland’s economy through: –Mode shift grants –Infrastructure enhancements

Scotland’s Periodic Review Build on the success of PR08 Learn lessons from the Nelson report Get the right outcome for Scotland

PR13 - Progress so far Development stage: consultation Formal stage: Advice to Ministers -Notice to submit HLOS (31 July) -Notice of track access charges review -Range of NR revenue requirements

Key messages so far Passengers and freight users in Scotland at the heart of the review Support aspirations for rail in Scotland Support greater alignment and closer working Simplicity and ease of understanding: sweep away the complex. Value for money for taxpayers and users. Strong evidence base built in partnership

PR13 – how does this affect freight Initial Industry Plan: some recommendations for freight investment ORR keen on early certainty on freight charges Consultation on freight caps in April – conclusions expected in July Freight performance/disruption: understand that industry is developing proposals.

Key next steps Consultation on freight charges – April 2012 NR funding framework – April 2012 HLOS/SoFA – July 2012 Consultation on NR’s outputs – August 2012 Consultation on Schedule 4&8 – November 2012 NR SBP – January 2013 Final ORR Determination – October 2013

HLOS and SoFA Currently in early development stage Analysing outcomes of Rail 2014 consultation Analysing Rail IIP Extensive engagement with the industry

Key considerations Performance including resilience Capacity including investments Funds including Strategic Freight Fund Journey times Environment Alignment Customers/users Separate section on freight Future network developments Affordability – constraints on public finances

Thank you for listening